Natco Pharma Ltd. on Thursday said its board has approved setting up of a subsidiary in Indonesia with an investment of up to $3 million (nearly Rs 25 crore) for selling pharmaceutical products in that country.
The new subsidiary, PT. NATCO Lotus Farma will be a joint venture with Natco holding 51% and the balance stake 49% by PT. Mitra Medis Exim (MME), a part of Mitra Jaya Group, which is a 40 year old multi-diversified group, as the co-promoter, the company said in a regulatory filing.
The company's board approved the proposal at its meeting held on Thursday.
Natco will initially invest $1 million for a stake of 51% as capital contribution and balance will be invested as and when the funds are required by the subsidiary, it added.
PT. NATCO Lotus Farma will be engaged in selling pharmaceutical products in Indonesia, it added.
MME is in the business of distribution for active pharmaceutical ingredients and excipients for end-users in Indonesia.
On the rationale behind the step, Natco said,"(The) objective is to enter new geographies for growth and increased profitability."
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